SOS – the ATO is on my back!

Alicia: Hi, this is Alicia from the Australian Taxation Office calling for Mr John Smith.
John Smith: This is he
Alicia: I’m calling regarding the Activity Statement you have recently lodged for the June quarter.
John Smith: Ummm ….. yes!?
Alicia: It has come up for review and I was hoping to ask you a few questions.

John’s heart begins to pounce at 200 km’s per hour. He fears interrogation. What could they possibly ask? What if his answers are incorrect?

Despite the heart pumping harder that usual – following some simple proactive and reactive strategies will keep your heart attack at bay! […]

Nifty Links

Some useful links to save you time hunting around (Click on Heading for Links of Interest)

Trusts – the Basics

One reader asked if I could step back and explain the basics of some of the lingo within setting up a ‘Trust’.

In any type of trust (discretionary, unit, fixed, hybrid etc) – common elements are present. Hopefully I can explain them in as simple terms as possible. But please make sure you understand these more thoroughly if you’re pursuing a Trust structure. […]

To Trust or Not to Trust?

We’ve all heard of Trusts but what are they in practice? Do we need them? Is there only one type of a so called Trust?

This post will look at Unit Trusts – only one of the variables within the Trusts’ umbrella.

A Unit Trust is a trust in which the trust property is divided into a number of defined shares – units. Beneficiaries subscribe to these units. A beneficiary is then entitled to the income and capital of the trust in proportion to the number of units they hold.

So why a Unit Trust? – Beneficiaries interests are clearly defined, can be easily transferred and can be reacquired by the trustee. Also important to note that trusts by nature, don’t have the highest form of regulations as company structures do. […]

Accountants … Someone Has To Be!

Mention that you are an accountant at a dinner party and most people are unsure how to respond. Typically, people want advice on reducing their income taxes or how to open an off-shore bank account where they can secretly squirrel away their savings. It can also be a total conversation killer.

After all, I can’t think of many action/adventure film where the main character is an accountant. However in a world where there are two certainties – death and taxes – it really isn’t such a strange career choice. Somebody has to count the beans!

The truth of the matter is, most people don’t like the thought of having to keep accurate records and who has the time to read through complicated tax laws written in a language that vaguely resembles English? Enter: Your friendly local accountant.

When Governor Phillip came to NSW in 1788, he brought with him a Royal instruction granting him authority to impose taxes as a means of raising money to the benefit of the colony. Well, it seems that it was a success
because we’ve been paying taxes in one form or another ever since. Taxes were levied to help build the first jail in Sydney. Then, as now, accountants worked on both sides of the fence. […]